Question 1

A disadvantage of a sole proprietorship is the fact that the owner has ______________.

Accepted Answer

The answer of A disadvantage of a sole proprietorship is...

Question 2

In the partnership form of business,the owners are called stockholders.

Accepted Answer

A) True 
 B)False

Question 3

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Accepted Answer

A) +$10,000 accounts receivable, -$10,000 accounts payable. 
B) +$10,000 accounts receivable, +$10,000 accounts payable. 
C) +$10,000 accounts receivable, +$10,000 cash. 
D) +$10,000 accounts receivable, +$10,000 revenue. 
E) +$10,000 accounts receivable, -$10,000 revenue. 
A) +$10,000 accounts receivable, -$10,000 accounts payable. 
B) +$10,000 accounts receivable, +$10,000 accounts payable. 
C) +$10,000 accounts receivable, +$10,000 cash. 
D) +$10,000 accounts receivable, +$10,000 revenue. 
E) +$10,000 accounts receivable, -$10,000 revenue.

Question 4

Match between columns
                        Premises: Provide the means organizations use to pay for resources such as land,buildings,and equipment to carry out plans.
An information and measurement system that identifies,records and communicates relevant reliable and comparable information about an organization's business activities.
The part of accounting that involves recording transactions and events,either electronically or manually.
Persons using accounting information who are not directly involved in the running of the organization.
Beliefs that distinguish right from wrong.
Persons using accounting information who are directly involved in managing the organization.
Concern for the impact of actions on society.
The use of resources to research,develop,purchase,produce,distribute,and market products and services.
The acquisition and disposing of resources that an organization uses to acquire and sell products and services.

Accepted Answer

The Answer of External users and Accounting and Internal users is...

Question 5

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period,what was the effect on the assets?

Accepted Answer

A) Assets would have increased $55,000. 
B) Assets would have decreased $55,000. 
C) Assets would have increased $19,000. 
D) Assets would have decreased $19,000. 
E) None of these. 
A) Assets would have increased $55,000. 
B) Assets would have decreased $55,000. 
C) Assets would have increased $19,000. 
D) Assets would have decreased $19,000. 
E) None of these.

Question 6

What is the purpose of return on assets as an analytical tool?

Accepted Answer

Return on assets is useful in

Question 7

According to the cost principle,it is preferable for managers to report an estimate of an asset's value.

Accepted Answer

A) True 
 B)False

Question 8

A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of owner's equity?

Accepted Answer

A) $17,000. 
B) $29,000. 
C) $71,000. 
D) $88,000. 
E) $105,000. 
A) $17,000. 
B) $29,000. 
C) $71,000. 
D) $88,000. 
E) $105,000.

Question 9

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange,is the:

Accepted Answer

A) Accounting equation. 
B) Cost principle. 
C) Going-concern assumption. 
D) Realization principle. 
E) Business entity assumption. 
A) Accounting equation. 
B) Cost principle. 
C) Going-concern assumption. 
D) Realization principle. 
E) Business entity assumption.

Question 10

The term ___________ refers to a liability that promises a future outflow of resources.

Accepted Answer

The answer of The term ___________ refers to a liability...

Question 11

The income statement reports on operating activities at a point in time.

Accepted Answer

A) True 
 B)False

Question 12

The four basic financial statements include the balance sheet,income statement,statement of owner's equity,and statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 13

U.S.government bonds are:

Accepted Answer

A) High-risk and high-return investments. 
B) Low-risk and low-return investments. 
C) High-risk and low-return investments. 
D) Low-risk and high-return investments. 
E) High risk and no-return investments. 
A) High-risk and high-return investments. 
B) Low-risk and low-return investments. 
C) High-risk and low-return investments. 
D) Low-risk and high-return investments. 
E) High risk and no-return investments.

Question 14

Use the following information as of December 31 to determine equity. Liabilities……………… $141,000
Cash…………………… 57,000
Equipment…………….. 206,000
Buildings........................ 175,000

Accepted Answer

A) $57,000. 
B) $141,000. 
C) $297,000. 
D) $438,000. 
E) $579,000. 
A) $57,000. 
B) $141,000. 
C) $297,000. 
D) $438,000. 
E) $579,000.

Question 15

Determine the net income of a company for which the following information is available for the month of May.

Accepted Answer

A) $190,000. 
B) $210,000. 
C) $230,000. 
D) $400,000. 
E) $610,000. 
A) $190,000. 
B) $210,000. 
C) $230,000. 
D) $400,000. 
E) $610,000.

Question 16

Match between columns
                        Premises: Withdrawals.
Total equity.
Assets.
Revenues.
Expenses.
Cash from operating activities.
Liabilities.
Cash from investing activities.

Accepted Answer

The Answer of Statement of cash flows and Balance sheet is...

Question 17

Another name for equity is:

Accepted Answer

A) Net income. 
B) Expenses. 
C) Net assets. 
D) Revenue. 
E) Net loss. 
A) Net income. 
B) Expenses. 
C) Net assets. 
D) Revenue. 
E) Net loss.

Question 18

Investing activities are the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.

Accepted Answer

A) True 
 B)False

Question 19

______________ users of accounting information are not directly involved in running the organization.

Accepted Answer

The answer of ______________ users of accounting information are not...

Question 20

Cash investments by owners are listed on which of the following statements?

Accepted Answer

A) Balance sheet. 
B) Income statement. 
C) Statement of owner's equity only. 
D) Statement of cash flows only. 
E) Statement of owner's equity and statement of cash flows. 
A) Balance sheet. 
B) Income statement. 
C) Statement of owner's equity only. 
D) Statement of cash flows only. 
E) Statement of owner's equity and statement of cash flows.

Exam 1: Accounting in Business

A disadvantage of a sole proprietorship is the fact that the owner has ______________.

In the partnership form of business,the owners are called stockholders.

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period,what was the effect on the assets?

What is the purpose of return on assets as an analytical tool?

According to the cost principle,it is preferable for managers to report an estimate of an asset's value.

A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of owner's equity?

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange,is the:

The term ___________ refers to a liability that promises a future outflow of resources.

The income statement reports on operating activities at a point in time.

The four basic financial statements include the balance sheet,income statement,statement of owner's equity,and statement of cash flows.

U.S.government bonds are:

Use the following information as of December 31 to determine equity. Liabilities……………… $141,000 Cash…………………… 57,000 Equipment…………….. 206,000 Buildings........................ 175,000

Determine the net income of a company for which the following information is available for the month of May.

Another name for equity is:

Investing activities are the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.

______________ users of accounting information are not directly involved in running the organization.

Cash investments by owners are listed on which of the following statements?

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters